Stay Away From "Golden Ten Years" Econo Hotel Becomes "Light"

Econo Hotel, once had glorious "golden ten years", the giant surges, Han Ting, home, 7 days, Jinjiang... It has led to a wave of listing.

However, according to the statistics of Zhao Huanyan, chief knowledge officer of Huamei hotel consultant, since 2010, there has been a continuous decline in the available housing income of several major Econo Hotel groups.

In the winter of the Econo Hotel, the trend of the hotel industry has changed. With the upgrading of consumption and the rise of mid-range hotels, the latter jumped directly through Econo Hotel to make a mid-range hotel. Although the price is higher, the new generation of consumers do not mind spending money on comfort. Under the internal and external difficulties, the removal of the "economic" label seems to be a way for hotel groups to save themselves.

Ebb and flow

After ten years of golden development, Econo Hotel also ushered in a period of adjustment.

In October 2006, the family was listed on the NASDAQ bell. On the first day of listing, as the family opened at $22 /ADS, it was 59.4% higher than the issue price and ended up at $22.50, up 8.7 from the issue price, or 63.04%. In November 2009, 7 Days Inn group was listed on the NYSE. It only took 20 days to submit the IPO application to the public market. In March 2010, the Hua Heng Hanting chain hotel successfully went to the US market. Since then, the tide of Econo Hotel's coming to the US has temporarily subsided.

At present, such as home and 7 Days Inn group has been delisted, respectively by the first brigade Hotel and Jinjiang shares into the command, docking A share market. At present, the three major hotel groups listed in the US are still living in the US stock market.

By 2019, the concentration of the brand economy of the chain hotels of the slow development has further improved, and the market share of the top 10 cities has reached 65%.

Platinum Tao Group official website data show: at present, the platinum Tao experience life circle covers 16 brands, combined Jinjiang has 150 million members, the total number of stores is over 6500, covering more than 470 cities nationwide, and actively expanding Asia, Europe, Africa and other markets.

"At the end of last year, we were panicked and thought 2019 might be terrible. Should we cut costs and be cautious? This year, the platinum Tao Zhong hotel has ushered in over 1200 contracts on the basis of more than 3000 original hotels. The spring harvest, autumn harvest, the achievement of 1200 families a year, behind this is not just luck, there are more internal reasons. " Zhou Kui, President of platinum Tao Group, comforted the panic and anxiety of the hotel circle in 2019 with the help of the fifth platinum summit investment week. And this is Zhou Kui's debut in Zheng Nanyan's debut week.

"We have accumulated more than 4000 of the franchisees. Overall, the chain rate of Chinese hotels is still very low. Europe and the United States are all 50%-60% chains, and the Chinese market is still very low. There are many monomer hotels in the stock. On the other hand, China's urbanization process is still accelerating. In an interview with the twenty-first Century economic news reporter, Zhou Kui said, "Econo Hotel similar to the 7-11 convenience store, despite its high density, still has plenty of space to enter. And good location represents traffic. In the future, location selection is still the key to Econo Hotel. We believe that the Econo Hotel market is not saturated, but there is still room for market expansion.

In September 2015, Jinjiang invested nearly 10 billion yuan to buy platinum Tao 81% stake. After the completion of the acquisition, Jinjiang jumped to become the fifth ranked Hotel Group in the world. In 2018, Jinjiang increased the shareholding ratio to 96%, and Jinjiang's integration efforts were further extended to all sectors.

Jinjiang International Group has been relying heavily on acquisitions in the past two years, including platinum, Vienna, Louvre and Lisheng hotels. The group has also ranked second in the world. According to the data released in October 22nd, Jinjiang International Group announced that it achieved the goal of 10000 hotels and 1 million guest rooms determined by the company's "13th Five-Year plan" in advance and ranked among the "global second".

In the 2019 Q3 earnings report, the Jinjiang hotel in 2019 1 to September, the limited service hotel business realized the combined operating income of 11 billion 94 million yuan, an increase of 2.92% over the same period last year; the high-end hotels in Hua Zhong lived up by 272 in the 3 quarter, and the total number reached 1947, of which the largest number was the All Seasons (759), followed by Starway Hotel (317) and orange selection (233). In the 3 quarter, the number of newly opened shops was 197, and the number of newly opened hotels in medium and high-end hotels was 73.

This data, after Econo Hotel experienced a golden development cycle, in a doubt of a weak Econo Hotel, undoubtedly like doping.

Spring harvest and autumn harvest

Under the trend of consumption upgrading, around 2013, China's chain hotels began to enter the development stage of mid-range hotels, and the traditional economic brands had entered the backyard.

Take platinum Tao as an example. In 2015, there were a lot of economic types in the nearly 1000 hotels in 2015, but in 2016, the economic and mid-range hotels formed a half split situation.

With the adjustment of the national economy, the consumption of the market will be more diversified and fragmented. When the 300-500 yuan middle market is killing, how to locate and develop the new Econo Hotel with 200-300 yuan will be a problem for every brand. On the one hand, this market relies on the upgrading of the original Econo Hotel. On the one hand, it needs to re plan the new brand mode and make a cost-effective hotel with limited investment. Mid-range hotels often invest more than ten million, and return has become the focus of investors' attention.

Zhou Kui said that in terms of consumption ability, it is easy to cross 1 degrees from 200 to 300, but it is difficult to leap 2 from 200 to 500; but in fact, if we look at the whole hotel product line, other than the top tier, we can basically get through. "Nowadays young people are coming to Select Hotel according to different needs, preferences and even different feelings. In the future, our hotel classification is no longer a simple high school, but we are subdivided according to various functional occasions and tonality."

"The hotel industry is the spring harvest autumn harvest industry. The cooperation between us and investors lasted for 5 to 10 years, and the long-term cooperation was the key. More than 10 years ago, we developed the seven day brand because of the lack of standardized products between star hotels and hostels. We should seize three core points: wash bath, get a good net, sleep well, and make an economic brand product. Because there is no bright spot to meet the needs of all hotel customers. And by grasping the core needs, self revolution, through the way of light assets to develop. To this day, what we need more is to adapt to the trend of consumption. The life of hotels will become the direction of development. Zhou Kui told the twenty-first Century economic news reporter.

At present, platinum Tao not only owns a hotel, but the enterprise that started with 7 Days Inn 14 years ago has been upgraded to a brand building platform covering hotels, apartments, joint offices, and so on, with nearly 16 brands.

Hotel lifestyle

"The business opportunity of lifestyle is a hot topic in recent years. Among them, people's" time wallet "is the object of business mad. Nowadays, after 90, the consumption mode tends to be more personal and diversified. Therefore, the excavation of people's time wallet will be the trend in the future. Taking our platinum Tao Hotel week as an example, we strive to explore new market space through a IP and a platform. In addition to building IP, exploring new consumption power has become the direction of new energy development in the hotel industry. In the hotel selling related products, to "accompany but not disturb" state to give consumers the space to choose. Zhou Kui said.

In fact, since 2013, Zheng Nanyan, founder of platinum Tao, has put forward the brand concept of "brand first" and has developed a multi brand development strategy. At that time, how to make the brand proposition more fresh, more tonal, and more able to connect with consumers for a long time to create perceptual value is a difficult problem for Tradition Hotel people. According to different consumption demand, platinum Tao Group creates different hotel brands, from parity to high-end, from business travel to leisure vacation. Different consumers correspond to different market segments, thus occupying more market share. Platinum Tao is creating such a perfect brand system, giving consumers diversified brand choices, and giving investors more diversified portfolio.

In the new battlefield of Econo Hotel, how to fight for more attention and consumption power of young users becomes the key. Econo Hotel needs to be repositioned to identify the real needs of young customers. The millennial generation is pursuing fast, convenient, fashionable and light words. We can gradually find this feeling in home Neo and Hanting youjiali. The shared space, social space, design sense, Internet, light fashion, and local culture of young people are the direction of hotel brand thinking. Econo Hotel is no longer a bed, a bath, a net line, a simple breakfast, and a mechanical service concept. Instead, it needs a new way of life, advocating the most economical consumption and finding the best experience.